Latest news with #UniCredit
Forbes
13 hours ago
- Business
- Forbes
Dollar Tanks Amid Tariff Onslaught: How You Can Beat Inflation
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. The American dollar has hit its rock bottom, at least since the Nixon days. The dollar is experiencing its worst value since 1973, and other factors may bring it even lower. There are a few tactics, however, that consumers have to level the playing field and fight inflation. According to a July report by MarketWatch, the ICE U.S. Dollar Index fell by nearly 11% in the first half of 2025, the biggest decline during the first half of a calendar year on record since when Nixon was president. Experts say that the wave of tariffs imposed by President Trump has eroded national and international faith in the dollar, especially following his attacks on the central bank. 'What can kill the value of the U.S. dollar, what can absolutely destroy faith in the U.S. dollar, is attacking in any way, shape, or form the independence and authority of the Federal Reserve,' Juan Perez, senior director of trading at Monex USA, told Reuters . A July report by UniCredit, a pan-European commercial bank, called the American dollar 'the most notable loser so far this year.' 'It has lost 10% against other currencies, with investor concerns regarding Trump's policies having weighed on the greenback,' the report said. 'On the other hand, the EUR index has risen by 5%.' Leaving your excess income in a checking or a regular savings account will do nothing against inflation and puts you at a disadvantage as the dollar gets weaker. For money that doesn't need to go toward immediate purchases or bills, put it in a certificate of deposit (CD) or high-yield savings account for growth. A CD is a savings account that allows consumers to earn interest at a fixed rate over a predetermined period. The tradeoff is that users have limited access to their funds, unlike most savings accounts, where withdrawals do not incur penalties. CDs are often a go-to move for those saving for big-ticket items, like a home or a car, or those with disposable funds they'd like to grow. Interest rates are typically much higher than typical savings accounts. Keep in mind certain factors when picking out a certificate of deposit account, as they will determine how much interest you earn on money that's immovable over your fixed term. When choosing a CD , take care to note its compounding schedule, which is how your money will grow. Some CDs compound interest daily, while others compound monthly. The more frequently the interest compounds, the more you stand to earn. Read More: 10 Best CD Rates of July 2025: Up To 4.50% APY High-yield savings accounts may be a better option for those who can't afford to hole their money up for months or years at a time, as they're more flexible than CDs and allow enrollees to withdraw money whenever they need to without penalty. Interest rates are much higher than the national average, with users eligible to earn as much as 5.84% on their savings, with the highest yield on a standard savings account with a $2,500 minimum deposit amount at the rate, according to data from Curinos. Read More: 10 Best High-Yield Savings Accounts Of July 2025: Up To 3.80% APY
Yahoo
17 hours ago
- Business
- Yahoo
Fortenova slashes debt since emerging from Agrokor restructuring
Fortenova, the Croatian food, drinks and retail group, has slashed its gross debt by more than a third since the restructuring of what was formerly Agrokor. Since embarking on a new business strategy in 2019, complete with a number of divestitures and under its new identify, Zagreb-based Fortenova has cut debt to €650m ($757.1m) from as much as €2bn. The business revealed the figures as it announced what it said is an 'important step in the further stabilisation and strengthening of its financial position'. That involves the refinancing of €500m in debt with Zagrebačka bank and UniCredit Group, which will take effect from 1 October, according to a statement. Fortenova added that since 2019 it has 'systematically been implementing its deleveraging strategy by divesting assets and increasing profitability, whereby it was able to significantly reduce its leverage'. The group suggested its net-debt-to-EBITDA ratio is 'within the range that corresponds to investment [grade] credit rating'. Agrokor was the largest consumer goods business in the Balkans until it was put into state-administration in 2017 amid huge debts and accusations of fraud by its founder Ivica Todoric. Fabris Peruško was the head of the government-appointed Extraordinary Commission set up to oversee the recovery process post-Agrokor and he also then became CEO of Fortenova. Commenting on the refinancing, Peruško said: 'Following the change in ownership and the exit of sanctioned shareholders from our structure, we were able to fully dedicate our attention to the business, to restructuring the operational and real estate portfolio and to implementing our vision of the group's future. 'I would like to thank Zagrebačka banka and UniCredit Group for the trust placed in us and look forward to our further collaboration.' Fortenova now operates 29 production plants supplying food and drink products mainly to Croatia, Slovenia, Serbia, and Bosnia & Herzegovina, according to its website. In food, the company owns the Zvijezda edible oils, sauces and deli brands, along with the Pik Vrbovec line of fresh and processed meats. It is also present in spreads with Dijamant. Roto forms an offering of soft and alcoholic drinks, along with the Sarajevski Kiseljak brand of mineral waters. Fortenova also owns and operates retail chains with the likes of Mercator, Konzum and Tisak. Earlier this year, Croatian alcoholic drinks group Badel 1862 struck a deal to acquire local wine, cheese and olive oil maker Agrolaguna, and the winery Vinarija Novigrad, from Fortenova. Divestitures also included a clutch of food and drinks assets sold to fellow CPG business Podravka. The deal featured fruit and vegetables processor Pik-Vinkovci and grains wholesaler Felix. Podravka also took over Belje, which produces wines, dairy products and cured meats. Damir Spudić, Fortenova's CFO, added in the refinancing statement: 'Behind us there are numerous key operations - from the divestment of non-core parts of the group to a number of processes implemented to additionally consolidate and improve the business through operational restructuring and strengthening the cost efficiency of our companies. 'The result are growing revenues and operating profits in all our key segments. At the same time, we have set a clear strategic framework for the forthcoming development period, where our focus will be on retail, food and beverage production and distribution.' According to Fortenova's website, the group generated revenue in 2023 of €5.9bn and adjusted EBITDA of €251m. Just Food has asked the company for an update on more recent figures. Meanwhile, the website says Fortenova acquired the local fruit- and vegetable-related businesses Enna Fruit and Naturala this year. "Fortenova slashes debt since emerging from Agrokor restructuring" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Yahoo
5 days ago
- Business
- Yahoo
UniCredit Banco BPM merger battle deepens as Brussels warns Italy against unlawful interference
The European Commission has issued Italy with a warning after an investigation found the government decree over UniCredit's takeover of Banco BPM may breach EU laws. The Commission warned Italy on Monday that obligations placed on the merger 'may constitute a breach of Article 21 of the EU Merger Regulation (EMUR) and of other provisions of EU law', according to an official statement. Rome decided to use its so-called 'Golden Power' rule to set conditions for the deal, a power created to protect national security interests. It gives the government the right to block or set conditions on foreign and domestic corporate takeovers in strategic sectors. Banco BPM is Italy's third largest bank, formed in 2017 through the merger of Banco Populare and Banca Populare di Milano. UniCredit, the country's second largest bank, is currently trying to acquire it, although progress may be stalled further as the European Commission has now issued a warning to Italy over potential unlawful demands. The European Commission approved UniCredit's acquisition 'subject to conditions' on 19 June. However, earlier, the Italian Prime Minister's office issued a decree on 18 April, imposing obligations on UniCredit in the case of a successful takeover. What is the problem with the takeover? Related European markets open in the red after Trump threatens 30% EU tariff Wizz Air halts Abu Dhabi operations as instability threatens profits According to their website the European Commission defines Article 21 as: 'Member States may take appropriate measures to protect legitimate interests, provided these are compatible with general principles and other provisions of EU law, and are appropriate, proportionate and non-discriminatory. This is subject to Commission scrutiny, notably to safeguard its competence under the EUMR and avoid Single Market fragmentation.' Following the decree from the Prime Minister's office, the Commission requested more information from Italy on 26 May. Italy responded on 11 June. After analysis, the Commission found that the 'the conditions' justification currently lacks sufficient reasoning', and that the decree should have been reviewed by them before implementation by Italy. The Commission also added that, as well as Article 21, Italy's approach may breach other EU laws on the free movement of capital and on prudential oversight by the European Central Bank. An Italian court also partially annulled the decree on 12 July. The Commission is awaiting further response from Italy before deciding its next steps. The offer period of the deal to Banco BPM from UniCredit is set to expire on 23 July. UniCredit offered to buy Banco BPM for €10 billion in late November last year. In a statement, the smaller lender said the bid from UniCredit did "not reflect in any way the profitability and further potential to create value for Banco BPM shareholders", rejecting the offer. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
5 days ago
- Business
- Yahoo
UniCredit withdraws bid for Banco BPM due to 'golden power' uncertainty
UniCredit's board of directors has announced the withdrawal of its bid for Banco BPM, after months of negotiations and intervention by the Italian government. The bank's reasoning behind the decision to pull out is the Italian government's implementation of the so-called golden power rule, requested by the Banco BPM management. Golden power is the instrument with which, in exceptional cases, a country's leadership can de facto condition or even prohibit a market transaction. According to UniCredit, the instrument would have made it impossible to complete the negotiations within the deadline set for the offer, depriving Banco's shareholders of the dialogue that normally takes place during an offer period to understand the value created by the takeover and determine the conditions that would be acceptable to move forward. Related Asian markets rise, Toyota up by 14% after US tariff deal "While we welcome the significant progress made with the TAR (Regional administrative tribunals), EU DG for Competition and the Italian government, the timeframe for a final resolution of the golden power issue goes well beyond the expiration of our offer and also that of the suspension decided today by CONSOB," reads the note in which UniCredit announced the withdrawal of the offer. "The offer process has been affected by the golden power clause, insistently invoked by BPM's top management, which has prevented UniCredit from engaging in dialogue with BPM's shareholders in the way that a normal offer process would have allowed," the group writes further. "This is a missed opportunity not only for BPM's stakeholders but also for the Italian business community and the economy in general. UniCredit remains convinced that the consolidation of the Italian banking sector would benefit both the country and Europe as a whole," the note concludes. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
‘Best year ever': UniCredit delivers record earnings, raises 2025 outlook
UniCredit S.p.A. has kicked off the European banking earnings season with a stellar performance, surpassing analyst expectations and raising its full-year guidance, buoyed by robust core revenues and pristine asset quality. The Milan-based lender posted a record net profit of €3.3 billion in the second quarter of 2025, lifting its first-half earnings to €6.1 billion. Earnings per share surged to €2.16, up 34% year-on-year and well ahead of the €1.55 forecast. Core revenue rose 1.3% annually to €5.9 billion in the quarter. According to the bank, these results are transforming what was meant to be a "transitional year into the best year ever." 'UniCredit has achieved outstanding financial results, with a record-breaking Q2 contributing to the best H1 in the bank's history,' said Chief Executive Officer Andrea Orcel. 'We are protected for the future as our low cost of risk, strong asset quality and unmatched overlays safeguard against potential macroeconomic downturns,' he added. Upgraded outlook and investor payouts In a further sign of confidence, UniCredit raised its full-year 2025 net profit guidance to approximately €10.5 billion, up from a prior target of more than €9.3 billion. The bank also lifted its net revenue outlook to above €23.5 billion and upgraded its return on tangible equity (ROTE) forecast to around 20%, from previously over 17%. Longer-term projections were also improved, with 2027 earnings now expected to reach at least €11 billion, up from circa €10 billion. The bank raised its distribution guidance to equal to or above €9.5 billion for 2025, including a cash dividend of at least €4.75 billion. An interim cash dividend of about €2.1 billion is envisaged, representing a 46% increase year-on-year, with the ex-dividend date set for 24 November. In addition, a €3.6 billion share buy-back programme is slated to commence following the second-quarter results. Goldman Sachs analyst Chris Hallam praised UniCredit's 'beat and raise' performance, highlighting the bank's continued earnings momentum and shareholder-friendly capital distribution. Related Asian markets rise, Toyota up by 14% after US tariff deal Billion euro deal: Sanofi buys UK biotech company to expand respiratory vaccine portfolio Balance sheet resilience and strategic clarity UniCredit's gross non-performing exposure (NPE) ratio remained stable at 2.6%, while the cost of risk stayed at a low nine basis points in the first half—underscoring the group's asset quality and prudent provisioning. Separately, UniCredit withdrew its offer for Banco BPM, citing unresolved conditions linked to Italy's golden power regulations. Orcel noted that the ongoing uncertainty surrounding the authorisation process did not benefit shareholders or the bank, prompting the decision to pull the deal. While progress had been made with the Italian Administrative Tribunal (TAR), the European Commission's Directorate-General for Competition and the Italian government, the bank concluded that the timeline for resolving the regulatory hurdle exceeded the offer window. Market reaction and sector momentum Investors responded positively to the results and upgraded guidance. UniCredit shares rallied 2.6% in early Wednesday trading to €59.60, bringing year-to-date gains to 54%. The stock surged 56% in 2024 and 85% in 2023, making it one of Europe's best-performing financials. The Euro STOXX Banks index advanced 1.4%, outperforming the broader Euro STOXX 600, which rose 0.9%. Peers including Deutsche Bank, Banco Bilbao Vizcaya and Nordea Bank each gained 1.5%, while BNP Paribas rose 1.1% ahead of its second-quarter earnings release on Thursday. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
